* U.S. nonfarm jobs growth weakest in eight months
* Brent, U.S. crude futures off more than 2 percent for the
* Ukraine, pro-Russian rebels agree to ceasefire
(Adds CFTC data in last paragraph)
By Robert Gibbons
NEW YORK, Sept 5 Crude oil futures fell on
Friday and ended the week more than 2 percent lower as
disappointing jobs data from the United States cast doubt about
the strength of economic growth in the world's biggest
U.S. jobs figures showed nonfarm payrolls increased by just
142,000 in August, well below forecasts of 225,000 and the
smallest rise eight months.
"U.S. economic growth was supposed to counter the slowing in
China and Europe and the payrolls report threw a little cold
water on that idea," said Gene McGillian, analyst at Tradition
Energy in Stamford, Connecticut.
Brent crude for October delivery fell $1.01 to
settle at $100.82 a barrel, having dropped to $100.35 intraday.
The last time Brent was priced under $100 was in June 2013.
U.S. October crude fell $1.16 at settle at $93.29 a
The weekly drop was Brent's third in four weeks and the
sixth in the past seven weeks for U.S. crude.
Oil prices extended losses after U.S. President Barack Obama
voiced scepticism about a ceasefire in Ukraine and said that the
agreement must last if sanctions on Russia are to be lifted.
Ukraine and pro-Russian rebels agreed to a ceasefire on
Friday, a first step to cool a conflict that has soured
relations between Moscow and the West.
Obama said at the same news conference that key NATO allies
were ready to join in military action to defeat Islamic State
militants in Iraq.
"Sanctions on Russia remaining in place keeps the market
concerned about demand and Europe's economy," said Phil Flynn,
analyst at Price Futures Group in Chicago.
The dollar weakened against a basket of currencies
after the U.S. jobs data but recovered later. Oil prices fell $1
on Thursday after a European Central Bank interest rate cut led
to a spike in the U.S. dollar.
A stronger dollar can depress demand for oil by making it
more expensive for holders of other currencies to buy the
"The main factor driving us down has been the strength of
the dollar," said Carsten Fritsch, senior oil and commodities
analyst at Commerzbank in Frankfurt.
"Supply is plentiful, but it has been for some time. The
change this week has been the rise of the U.S. currency. We
would need to see a weaker dollar and signs of improving demand
for oil prices to rise much on a sustainable basis."
Rising U.S. production, a glut of crude in the Atlantic
basin and Asia, together with the potential for rising exports
from OPEC members Libya and Iran, have added downward pressure
on oil prices.
Money managers cut their net long U.S. crude futures and
options positions in the week to Sept. 2, the U.S. Commodity
Futures Trading Commission said on Friday.
(Additional reporting by Christopher Johnson in London and
Jacob Gronholt-Pedersen in Singapore; Editing by Marguerita Choy
and Lisa Shumaker)